Correlation Between Senmiao Technology and Allient
Can any of the company-specific risk be diversified away by investing in both Senmiao Technology and Allient at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Senmiao Technology and Allient into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Senmiao Technology and Allient, you can compare the effects of market volatilities on Senmiao Technology and Allient and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Senmiao Technology with a short position of Allient. Check out your portfolio center. Please also check ongoing floating volatility patterns of Senmiao Technology and Allient.
Diversification Opportunities for Senmiao Technology and Allient
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Senmiao and Allient is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Senmiao Technology and Allient in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allient and Senmiao Technology is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Senmiao Technology are associated (or correlated) with Allient. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allient has no effect on the direction of Senmiao Technology i.e., Senmiao Technology and Allient go up and down completely randomly.
Pair Corralation between Senmiao Technology and Allient
Given the investment horizon of 90 days Senmiao Technology is expected to under-perform the Allient. In addition to that, Senmiao Technology is 1.18 times more volatile than Allient. It trades about -0.24 of its total potential returns per unit of risk. Allient is currently generating about 0.11 per unit of volatility. If you would invest 2,428 in Allient on November 1, 2024 and sell it today you would earn a total of 141.00 from holding Allient or generate 5.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Senmiao Technology vs. Allient
Performance |
| Timeline |
| Senmiao Technology |
| Allient |
Senmiao Technology and Allient Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Senmiao Technology and Allient
The main advantage of trading using opposite Senmiao Technology and Allient positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Senmiao Technology position performs unexpectedly, Allient can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Allient will offset losses from the drop in Allient's long position.| Senmiao Technology vs. X Financial Class | Senmiao Technology vs. Yirendai | Senmiao Technology vs. Pintec Technology Holdings | Senmiao Technology vs. Qudian Inc |
| Allient vs. MYR Group | Allient vs. Alignment Healthcare LLC | Allient vs. Pekin Life Insurance | Allient vs. Root Inc |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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